Jaipur, Nov. 22 -- Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) and Telangana's state-run Singareni Collieries Company Limited (SCCL) are launching a joint thermal power project near coal mines in Telangana - a move expected to drastically cut power generation costs and redefine cooperative federalism in a first-of-its-kind collaboration in India's power sector. The Rajasthan Cabinet recently approved the formation of a joint venture company, in which RVUNL will hold 26% equity and SCCL the remaining 74%. Deputy chief minister Premchand Bairwa stated that the JV will set up an 800 MW coal-based thermal power plant at the mining site at an estimated cost of Rs.9,600 crore. Additionally, the venture will establish 1,500 MW of solar power projects in Rajasthan, costing Rs.6,000 crore, creating a hybrid energy balance between the two states. An official familiar with the development said a key advantage of the project lies in its location: the thermal plant will be constructed close to SCCL's coal mines, ensuring seamless coal supply while drastically reducing transportation costs. Officials estimate the cost of electricity generation to be Rs.5.60 per unit, significantly lower than current power purchase rates that exceed Rs.6 per unit. The plant will be built by BHEL and is expected to be completed by 2028. He said the partnership not only reduces production costs but also guarantees long-term affordability for consumers in Rajasthan. With SCCL owning multiple coal blocks, fuel supply issues - a common challenge for thermal plants - will be minimized. Energy principal secretary Ajitabh Sharma described the initiative as a new model of cooperative federalism, marking the first time two states have agreed to exchange their inherent energy strengths through a mutual sale of thermal and renewable power. He said Rajasthan's unmatched solar potential combined with Telangana's coal-rich thermal strength creates a "balanced, reliable and forward-looking energy ecosystem." "This is the first arrangement of its kind in the country where both conventional and renewable energy will be mutually traded," Sharma said, adding that the model encourages states to leverage their natural resources collaboratively instead of operating in silos. He expressed confidence that this venture would boost energy security and inspire similar interstate partnerships nationwide. Rajasthan's latest installed capacity assessment shows that thermal power continues to dominate the state's energy landscape, with a total generation capacity of 8594.35 MW. Coal-fired units form the core of this portfolio, led by the Suratgarh Super Thermal Power Station (STPS), which remains the state's largest power complex. Together, its O&M units (1500 MW) and Supercritical units (1320 MW) contribute a massive 2820 MW to the grid. The Chhabra Thermal Power Plant (CTPP) follows closely with a combined 2320 MW, split between 1000 MW from its older units and 1320 MW from its supercritical additions. Other major thermal contributors include the Kota Thermal Power Station (1240 MW) and the Kalisindh Thermal Power Project (1200 MW), reinforcing Rajasthan's dependency on coal-based base-load generation. Beyond coal, the state's fuel mix is supplemented by gas, hydro and lignite. The Ramgarh Gas Thermal Power Project in Jaisalmer adds 270.50 MW, while hydropower contributes 163.85 MW through the Mahi Hydel Power Station in Banswara and a network of micro hydel units. Lignite-based capacity stands at 250 MW from the Giral Lignite Thermal Power Plant, and the Dholpur Combined Cycle Power Plant provides an additional 330 MW. The data underscores the region's heavy reliance on large thermal plants to ensure grid stability, even as renewable energy grows in parallel....